Introducing our all new Auto Income tool!

At Lending Works, we’re committed to delivering greater control and flexibility to our lenders, and once again we’ve taken things to a new level by bringing in our brand new Auto Income tool. From early April, our lenders will have the option of drawing down their interest repayments, or a combination of their capital and interest repayments, which will provide them with a monthly source of income direct to their bank account. And with no fees involved!

It’s an exciting time for peer-to-peer lending platforms and their customers as we find ourselves on the cusp of the new pension reforms coming into effect. Furthermore, the announcement for the implementation of P2P lending within ISAs is due in the summer, and it’s therefore no surprise that the UK sector is set to swell from £2bn to £45bn within the next few years.

However, rather than simply ride the wave, we’ve instead chosen to take the lead by adding this new string to our bow, and it means our customers will have even more control over their finances. Until now, P2P lending has typically been viewed purely as a means for capital growth. However, with the arrival of Auto Income, our platform will transform into an income device for those who desire it.

Ideal for pensioners

The timing of Auto Income’s launch is no coincidence either given the incoming pension reforms. While we envisage that the tool will attract a diverse new set of customers, we believe it will be particularly appealing for the growing set of pensioners who are drawn to the high rates of interest offered by Lending Works, but who do not wish to lock away their funds for the full duration of the lending period.

Our CEO Nick commented: “We are really excited about the opportunity Auto Income brings in terms of expanding our customer base to those who are looking to use peer-to-peer as an income tool as well as a growth tool.

“Our customer feedback shows that more and more later-life lenders are turning to peer-to-peer to earn great interest rates, but not all of them want to tie their money away for several years. Auto Income answers this need completely, providing the agility and flexibility that customers expect from alternative personal finance providers today.

“Innovation is one of our values, and we have lots more innovative ideas in the pipeline,” he added.

Michael Todt

Mike joined Lending Works in early 2015 with a background in marketing and journalism. Having long held a passion for economics, he is now the chief contributor to the Lending Works blog, and regularly writes about all things peer-to-peer lending, fintech and personal finance.